American Auto Insurance Company Review: Should you buy in 2024?

Auto insurance companies are known to raise rates for high-risk drivers or even deny those drivers coverage entirely, making shopping for insurance difficult. Thankfully, some insurance companies on the market cater to the needs of such drivers.

American Auto Insurance may be a great fit for high-risk drivers from the Prairie State. Not only does this insurance company offer traditional forms of auto insurance, but it also has SR-22 Insurance available. Keep reading to learn more about this company and how you can reduce your auto insurance rates.

As you read this American Auto Insurance review, you can shop for an auto insurance policy that meets your needs. Enter your ZIP code to start receiving free insurance quotes right away.

Introduction to American Auto Insurance

American Auto Insurance has been helping Illinois drivers get the car insurance they need for over 60 years. It offers low car insurance rates and allows drivers to pay for their policies with a check, cash, or a credit or debit card. The head office for American Auto Insurance is located in Des Plaines, Ill. If you buy a policy through American Auto Insurance, you can make policy payments online and even renew your policy through the website.

If you’re looking for a company that can provide high-quality customer service, American Auto Insurance may be the right choice for you. It is a Better Business Bureau (BBB) accredited company and has an A+ rating. However, American Auto Insurance doesn’t have a rating from A.M. Best, so if you’re looking for a company proven to have a strong financial background, you may want to shop around online.

Why You Should Consider American Auto Insurance for Your Vehicle

What the Typical Fees & Coverage for an American Auto Insurance Policy Look Like

American Auto Insurance advertises that its car insurance quotes start as low as $14 per month, which means your potential annual policy premium would only be $168. Now, if you would like a policy summary to learn coverages you could get through American Auto Insurance, you can see them listed here:

• Bodily Injury Liability
• Property Damage Liability
• Uninsured Motorists Coverage
• Medical Payments
• Comprehensive Coverage
• Collision Coverage
• Rental Reimbursement
• SR-22 Insurance

When purchasing auto insurance, it’s in your best interest to acquire the coverage you need before adding anything extra to your policy to confirm that you can afford your essential coverage. So let’s take a closer look at these different coverage types so you can determine what you need to stay protected while driving.

Bodily Injury Liability

If you caused an accident and hurt another driver, your bodily injury liability insurance could help that individual pay for their medical expenses. Such coverage is critical because the other driver could sue you if you have no insurance or not enough bodily injury liability coverage.

Property Damage Liability

Let’s say that you rear-ended a car while driving, and you were at fault. Your property damage liability coverage would allow that other driver to access the funds they needed to get their car fixed. You can even use your property damage liability coverage to pay for any damages if you were to back into other property types like a fence.

Uninsured Motorists Coverage

If an uninsured driver struck you, your uninsured motorist coverage would allow you to get the funds you need to pay for any medical bills for injuries you sustained. In addition, this coverage would even help you receive compensation for lost wages if you were unable to work after the accident.

Medical Payments

You can use your medical payments coverage to pay for any medical bills you accrue after being in an accident. You can make use of this coverage whether or not you caused the accident.

Comprehensive Coverage

Another car isn’t the only thing that could damage your vehicle. If you’re caught in a hail storm while driving or if a tree branch were to fall on your car, you could file a comprehensive claim to get your car fixed. You will need to pay your deductible to access this coverage.

Collision Coverage

If your car collides with another vehicle or if you were to hit an object like a lane divider or a lamppost, your collision insurance coverage could help you restore your car to its former glory. You will need to pay a deductible to get your car fixed.

Rental Reimbursement

After experiencing an accident, you may be without a car for a few days. With rental reimbursement coverage, you can get a rental car that will take you where you need to go in the meantime.

Read more: AAA Rental Car Insurance Review: How good is the coverage?

SR-22 Insurance

SR-22 Insurance provides proof that you have the proper insurance coverage so you can get your license back after it’s been revoked or suspended for a time.

Trying to calculate the potential cost for all this coverage can be a bit confusing, but, thankfully, you won’t need an auto insurance cost calculator to determine which policy is right for you when you shop online for insurance. Instead, you’ll be able to compare quotes side by side to see which policy can get you the most coverage for the cheapest rate.

American Auto Insurance’s Claims Process and Claims Limits

Unfortunately, your options for filing a claim with American Auto Insurance are rather limited. If you need to file a claim, you can begin the process by calling the main American Auto Insurance phone number or reaching out to your local American Auto insurance representative. You can’t contact the American Auto Insurance Company claims department via the company website or through a mobile app.

If you do have to file a claim, you can usually utilize an insurance company’s discounts to keep your rates low. Unfortunately, it doesn’t appear that American Auto Insurance offers any discounts. This lack of discounts is a sharp contrast to most insurance companies which offer a plethora of money-saving opportunities to drivers:

Auto Insurance Discounts Available by Company

Discount Name
Adaptive Cruise Control	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Adaptive Headlights	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Anti-lock Brakes	10%	✓	✓	5%	5%	5%	✓	5%
Anti-Theft	10%	✓		23%	20%	25%	✓	15%
Claim Free	35%	✓	✓	26%	✓	10%	✓	15%	23%	12%
Continuous Coverage		✓	✓		✓	✓	✓	✓	15%	✓
Daytime Running Lights	2%		✓	3%	5%	5%	✓	✓
Defensive Driver	10%	10%	✓	✓	10%	5%	10%	5%	10%	3%
Distant Student	35%	✓	✓	✓	✓	10%	✓		7%
Driver's Ed	10%	✓	✓	✓	10%	✓	10%	15%	8%	3%
Driving Device/App	20%	40%	✓	✓	30%	40%	20%	50%	30%	5%
Early Signing	10%	✓	✓	✓	✓	8%	✓	✓	10%	12%
Electronic Stability Control	2%	✓	✓	✓	5%		✓	✓	✓	✓
Emergency Deployment	✓	✓	✓	25%	✓	✓		✓	✓	✓
Engaged Couple	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Family Legacy	✓	✓	✓	✓	✓	✓	✓	✓	✓	10%
Family Plan	✓	✓	✓	✓	✓	25%	✓	✓	✓	✓
Farm Vehicle	10%	✓	✓		✓	✓		✓	✓	✓
Fast 5	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Federal Employee	✓	✓		12%	10%	✓		✓	✓	✓
Forward Collision Warning	✓	✓	✓	✓	5%		✓	✓	✓	✓
Full Payment	10%	✓	✓		$50	✓	✓	✓	8%	✓
Further Education	✓	✓			10%	15%		✓		✓
Garaging/Storing	✓	✓	✓		✓	✓	✓	✓		90%
Good Credit			✓	✓	✓		✓		✓	✓
Good Student	20%	✓		15%	23%	10%	✓	25%	8%	3%
Green Vehicle	10%	✓	5%	✓	10%	✓	✓	✓	10%	✓
Homeowner	✓	✓	✓		✓	5%	✓	3%	5%	✓
Lane Departure Warning	✓	✓	✓	✓		✓	✓	✓	✓	✓
Life Insurance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Low Mileage		✓		✓			✓	30%
Loyalty	✓	✓	✓	✓	✓	5%	✓	✓	✓
Married	✓	✓	✓	✓			✓		✓
Membership/Group	✓	✓	✓		10%	7%		✓		✓
Military		✓	✓	15%	4%	✓			✓
Military Garaging	✓	✓	✓	✓	✓	✓	✓	✓	✓	15%
Multiple Drivers	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Multiple Policies	10%	29%	✓	10%	20%	10%	12%	17%	13%
Multiple Vehicles		✓	✓	25%	10%	20%	10%	20%	8%
New Address	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Customer/New Plan	✓	✓	✓	✓		✓	✓	✓	✓	✓
New Graduate	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Vehicle	30%	✓	✓	15%	✓			40%	10%	12%
Newly Licensed	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Newlyweds	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Non-Smoker/Non-Drinker	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occasional Operator	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occupation		✓			10%	15%	✓	✓		✓
On-Time Payments	5%	✓		✓	✓	✓	✓	✓	15%	✓
Online Shopper	✓	✓	✓	✓	✓	✓	7%	✓	✓	✓
Paperless Documents	10%	✓		✓	✓	5%	$50	✓	✓	✓
Paperless/Auto Billing	5%	✓		✓	✓	$30	✓	$20	3%	3%
Passive Restraint	30%	30%		40%		20%	✓	40%
Recent Retirees	✓	✓	✓	✓	4%	✓	✓	✓	✓	✓
Renter	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Roadside Assistance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Safe Driver	45%	✓		15%	✓	35%	31%	15%	23%	12%
Seat Belt Use	✓	✓	✓	15%	✓	✓		✓	✓	✓
Senior Driver	10%	✓		✓	✓	✓	✓	✓	✓
Stable Residence	✓	✓	✓	✓	✓		✓	✓	✓	✓
Students & Alumni	✓	✓	✓		10%	7%		✓	✓	✓
Switching Provider	✓			✓	10%	✓		✓	✓	✓
Utility Vehicle	15%	✓	✓		✓	✓		✓	✓	✓
Vehicle Recovery	10%	✓	✓	15%	35%	25%	✓	5%
VIN Etching	✓	✓	✓	✓	5%		✓	✓
Volunteer	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Young Driver	✓	✓	✓	✓		✓	✓	✓	✓	$75

Read more:

• AAA Auto Insurance Review: Should you buy?
• Amica Car Insurance Review
• Esurance Auto Insurance Review: Should you buy?

Remember that while discounts are a great way to keep your rates low, following safe driving practices is one of the best ways to reduce your rates. Not only will driving more defensively keep you safe while out on the road, but you could also reduce the number of claims you file, which, in turn, can result in lower rates.

What You Need to Know About American Auto Insurance

American Auto Insurance is designed to help high-risk Illinois drivers. If you are looking for essential auto insurance coverage that’s inexpensive, then American Auto Insurance may be the best choice for you. However, bear in mind that this company doesn’t offer any discounts or additional coverage options, so you won’t be able to customize your policy. The American Auto Insurance claims filing system is also a little outdated.

If you’re unsure if American Auto Insurance is the best company for you, you can shop online to compare insurance quotes and verify that you are getting the best rate possible.

Now that you’ve concluded this American Auto Insurance review, you can feel confident to start shopping for auto insurance. Enter your ZIP code to start comparing quotes from insurance companies near you today.