American Family Insurance Rates on the Rise? Here's What Policyholders Should Know

October 29, 2026 | Encompass Agency, Inc. | Buffalo, NY, USA

If you've recently opened your American Family Insurance renewal and noticed a significant increase in your premium, you're certainly not the only one asking questions.

Here at Encompass Agency, we've recently experienced an increase in inquiries from customers insured through American Family Insurance who are concerned about rising insurance bills. Some are wondering why their premiums have increased, while others are simply looking to see whether more affordable options might be available.

And while rising insurance costs are certainly nothing new, it's worth taking a closer look at what's happening and what policyholders can do about it.

American Family Insurance and Recent Rate Increases

Over the past several years, insurance companies across the United States have been adjusting their rates in response to a changing insurance marketplace. American Family Insurance has been among those companies.

According to S&P Global Market Intelligence data reported by Insurance.com, American Family's average homeowners insurance rate increase in 2024 was approximately 16.5% across the markets included in the analysis. This was one of the larger increases among the major insurers evaluated.

American Family also acknowledged implementing rate adjustments in its publicly released 2024 financial results.

It's important to understand that these are historical, broad-market figures. They do not represent a uniform increase for every American Family policyholder, nor do they necessarily reflect the rates being applied to individual policies here in New York.

Actual premium changes can vary considerably depending on the type of insurance, location, coverage selections, underwriting characteristics, and other rating factors.

Why Are Insurance Premiums Increasing?

We've discussed rising insurance costs in previous articles, and many of the same factors continue to influence premiums throughout the industry.

Some of the more significant factors include:

• Increasing repair and replacement costs: Whether it's repairing a vehicle after an accident or rebuilding a home after a fire, the cost of materials, labor, and equipment has changed considerably over the past several years.

• Severe weather and catastrophic losses: Windstorms, hail, flooding, wildfires, and other catastrophic events can place substantial financial pressure on insurance companies.

• Higher claim costs: Modern vehicles contain increasingly sophisticated technology, while property repairs often involve more expensive materials and labor. Even relatively minor claims can cost considerably more than they once did.

• Insurance company rate adjustments: Insurers periodically review their pricing and underwriting guidelines based on their own loss experience, projected expenses, and other considerations, subject to applicable state insurance regulations.

These challenges aren't necessarily unique to American Family Insurance. Many companies throughout the insurance industry have faced similar pressures, although their responses and pricing decisions can differ significantly.

Should You Be Shopping Your American Family Insurance Policy?

That's a question we've been hearing more frequently.

If your insurance premium has increased substantially, it may be worthwhile to compare your current coverage with options available through other insurance companies.

However, we'd caution against switching insurance companies based on price alone.

A lower premium doesn't necessarily mean you're receiving the same level of protection.

When reviewing insurance policies, it's important to consider differences in liability limits, deductibles, replacement cost provisions, exclusions, optional endorsements, and other coverage terms.

For example, two homeowners insurance policies may appear nearly identical on the surface but contain meaningful differences in how certain types of property damage are covered.

Similarly, an auto insurance quote with a lower premium might also have reduced liability limits or higher deductibles.

Our recommendation? Compare the coverage first, then evaluate the price.

The Advantage of Working With an Independent Insurance Agency

Unlike an insurance agent who represents a single insurance company, an independent insurance agency can work with multiple insurance carriers.

At Encompass Agency, we can review your current insurance coverage and explore available alternatives through the companies we represent. That doesn't necessarily mean switching companies will save you money. In some situations, your current insurer may still offer the most suitable combination of coverage and pricing.

However, comparing your options can help you make a more informed decision, particularly when you're facing a substantial renewal increase.

We believe that understanding what you're paying for is just as important as understanding how much you're paying.

Before You Renew, Consider Getting a Second Opinion

If you're currently insured through American Family Insurance and have noticed your premiums increasing, it may be a good time to have your coverage reviewed.

You don't necessarily need to wait until your renewal date to begin exploring your options, although any potential change should be carefully coordinated to avoid a lapse in coverage or unexpected cancellation charges.

At Encompass Agency, we're happy to review your existing policies, discuss your coverage needs, and provide alternative quotes when available.

Whether you're insuring your home, vehicles, or other personal property, our goal is to help you make an informed insurance decision.

Have an American Family Insurance renewal that's higher than you expected?

Contact Encompass Agency, Inc. to request an insurance review and explore your available options. Our office can be reached at 716-835-6790 (New York) 1-800-484-9712 (All other) from Monday to Friday, 9 AM to 4PM EST.

Encompass Agency, Inc. is an independent insurance agency and is not affiliated with American Family Insurance. References to American Family Insurance are provided for informational and comparative purposes only. Insurance premiums, eligibility, discounts, and coverage availability vary by insurer, applicant, policy, and state. Quotes are subject to underwriting approval and applicable policy terms. No savings, coverage equivalency, or acceptance is guaranteed.

Sources:

• Insurance.com, Home Insurance Rate Increases: Top Companies' Rates Increased 10.4% on Average in 2024, citing S&P Global Market Intelligence.

• American Family Insurance, 2024 Financial Results.

• American Family Insurance, Why Did My Auto Insurance Rate Go Up?