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You may have many questions when you are involved in a car wreck, we are here to help! We have compiled a list of the most frequently asked questions related to American Family Insurance car accident lawsuits and claims.

Is American Family Good At Paying Claims?

According to the J.D. Powers Auto Insurance Claims Satisfaction study done in 2022, American Family was ranked 874 points out of 1,000 for claims satisfaction. They tied with Geico, another popular auto insurance provider.

Does American Family Have Accident Forgiveness?

American Family offers accident forgiveness for free if you are claim-free for five or more years. You can also choose to purchase accident forgiveness as part of your insurance policy in case of an accident to prevent your policy from going up.

How Long Do You Have To File A Claim With American Family?

How long you have to file either a claim through your own insurance policy or a third-party claim with American Family will be contingent on your state’s statute of limitations.

Additionally, most insurance companies prefer that you file a claim as soon as possible following the auto accident.

Answer: You may be able to sue a large auto insurance company such as American Family Insurance, Geico, Allstate, or State Farm after a car accident. However, there are several steps you must first take before suing would be a viable option.

If you feel you’ve been treated unfairly throughout the insurance claims process or your claim was denied, consider working with an experienced car accident attorney.

Your attorney can help you understand your options and make the best decision for your unique case.

American Family insurance officer inspecting a customer's car that had an accident

What To Know About Suing American Family Insurance For An Insurance Claim

Once important thing to be aware of when suing American Family Insurance following a motor vehicle accident is how your state’s laws will impact the lawsuit.

States are either fault or no-fault in terms of car accidents. A ‘fault’ state means that the at-fault driver is held liable for the accident and responsible for compensating the other accident victims. This is typically true whether they are an insurance policyholder or an uninsured motorist.

A no-fault state means that each party is responsible for their own damages and personal injuries in terms of compensation. If you live in a ‘no-fault’ state, you will need to go through your own insurance to seek compensation for damages and losses.

Your accident attorney, or personal injury attorney, can help you determine the laws in your state and what that means for your case.

Is Suing American Family Insurance The Same As An Insurance Claim?

Answer: No, suing American Family Insurance is not the same as an insurance claim. Before you can file a lawsuit against the company, you must first submit an American Family Insurance claim, whether with your own insurance policy or that of the at-fault driver.

This allows the insurance company the opportunity to handle your claim in a legal and just way and to make you a fair settlement offer.

If you feel that the company acted in bad faith while handling your accident claim, offered a low settlement, or unjustly refused your claim, you may be eligible to sue American Family.

Eligibility For Filing A Car Accident Lawsuit Against American Family Insurance

In most cases, an insurance provider must poorly handle your claim or unlawfully refuse to honor your claim for you to be eligible to file a lawsuit against the company.

Ways that American Family Insurance may act in bad faith during the claims process include:

  • Misrepresenting policy terms
  • Taking too long to process a claim
  • Refusing to pay out reimbursement that is rightfully owed
  • Adjusters minimizing claim values in order to reduce payouts
  • Requiring an excessive amount of information to prove obvious damages and losses


What Type Of Lawsuit Can You File Against American Family Insurance?

Answer: The type of lawsuit you file against American Family Insurance will largely depend on your unique situation and the specific losses and damages you experienced. For example, if you sustained serious injuries, you’d likely file a personal injury lawsuit.

Common types of lawsuits in auto accident cases against insurance providers include:


Factors In Car Accident Lawsuits Against Insurance Companies

The legal system will take into account a variety of factors when determining the verdict of a car accident lawsuit against an insurance company.

Examples of common factors taken into consideration throughout this process include:

  • The extent and cost of medical bills incurred
  • The severity of property damage
  • Whether a driver has certain types of coverage, such as personal injury protection
  • The state the accident took place in
  • Whether the motorists involved hold driver’s insurance
  • Any disputes related to who caused the accident
  • Accident liability

Your personal injury lawyer can help you better understand each factor and which ones apply to your specific case.


How To Sue American Family Insurance Insurance After An Auto Accident

The following are the steps you may be able to take in order to sue an auto insurance company such as American Family.

1. Reach Out To A Reputable Car Accident Attorney

Right after the auto collision, get in contact with an experienced accident lawyer. Your attorney can help you with everything from the claims process to filing a lawsuit against American Family.

2. Submit Your Car Collision Insurance Claim

Before you can file a lawsuit, you must first submit a car accident claim with American Family. Because eligibility for suing the company is based on how they handle, or don’t handle, your claim, the claims process is an important first step.

Your accident attorney can help you gather all essential information and submit the claim on your behalf.

3. Start The Negotiations Process

After an insurance adjuster has evaluated your claim, the insurance company will typically provide you with a settlement offer. If this offer is unsatisfactory, your lawyer can negotiate with the company on your behalf.

4. File A Lawsuit Against American Family Insurance

If during the negotiations a fair settlement is not reached, your attorney may advise you that suing American Family is the best option to get the compensation you deserve. This process involves filing a lawsuit with your local court.

Evidence You Need To Sue American Family Insurance For An Insurance Claim

There are essential pieces of evidence that nearly all insurance companies require when submitting an auto accident claim.

The more evidence you have, the better your chances of receiving a settlement that fully compensates you for losses and damages.

Common pieces of evidence needed for a claim include:

  • Police report
  • Contact information of witnesses
  • Contact and insurance information of all parties involved in the accident
  • Proof of medical expenses and treatment
  • A loss report
  • Pictures of the scene of the accident and the vehicles involved


American Family Insurance Insurance Coverage And How It Affects Lawsuits

American Family Insurance, like most major insurance companies, offers specific types of coverage as part of their auto insurance plans. The type of coverage the at-fault driver has will depend on how much the company will compensate you for.

Examples of coverage offered through American Family include:

  • Collision coverage, which provides coverage for vehicular damage no matter who was at fault.
  • Comprehensive coverage, which provides coverage for damages that don’t involve other vehicles, such as damage incurred in inclement weather.
  • Property damage liability coverage, which provides coverage to the other party should you be liable for damaging their property.
  • Bodily injury liability coverage, which offers coverage to the other party should you cause an accident that results in bodily injury for the other driver.


How Long Do You Have To Sue American Family Insurance After An Accident?

Where you live will largely determine the amount of time you have to file a lawsuit against American Family Insurance following an auto accident.

Each state has a statute of limitations, which is the number of years a person has to submit a claim or sue after the date of an accident. You must submit your lawsuit within this time period to avoid losing eligibility to do so.

If you’re unsure of the statute of limitations in your state, your car accident attorney can help you better understand the time frame you have to work within.


American Family Insurance Car Insurance Lawsuit Settlements

Specific information on American Family Insurance car accident lawsuit settlements is not readily available to consumers. However, information related to most major insurance companies like American Family is available.

According to a study done by the Insurance Information Institute, in 2018, the average car accident settlement for personal injury was $15,785. For property damage, that average was significantly less at $3,841.


Types Of Damages In American Family Insurance Car Accident Lawsuits

There are several types of damages you may be able to submit for compensation in an American Family car accident lawsuit.

Common examples of damages seen in these types of cases include:

  • Property damage
  • Loss of consortium
  • Lost wages
  • Wrongful death
  • Medical expenses
  • Pain and suffering
  • Loss of enjoyment of life


American Family Insurance Auto Insurance Statistics

American Family Insurance is based in Wisconsin and provides auto and other insurance coverage to 19 Western and Midwestern states.

The average cost of a full-coverage auto insurance plan through American Family is $1,851 per year.

In J.D. Power’s 2022 Claims Satisfaction Study, the company ranked fourth for customer satisfaction among midsize auto insurance providers.


Get Help Suing American Family Insurance After A Car Crash Today

If you’ve been involved in an auto accident and feel your personal injury claim was wrongfully handled, consider working with an attorney to determine if a lawsuit is in your best interest.

At LegalFinders, we pride ourselves on helping our clients connect with the most qualified and experienced law firms in their area. We can help you find an attorney that’s right for your case and get set up with a free consultation.


Our staff are standing by to help you find the perfect attorney for your case.

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Published: 25 October 2023


Insurance Information Institute. “Facts + Statistics: Auto insurance.” Retrieved from:

Investopedia. “What Is Bad Faith Insurance and How Companies Can Act.” Retrieved from:

J.D. Power. “​​Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase, J.D. Power Find.” Retrieved from