American Modern Insurance Review: Home & Car

American Modern Insurance was established in 1965. It was the first company to specialise in mobile home insurance. The company started selling home and car insurance several decades later. The company currently offers policies in all 50 US states and Washington, D.C.

American Modern Car Insurance

American Modern does NOT offer standard auto insurance. The company is a specialist in collector cars insurance. This includes a variety of coverage options for classic, muscle, race, and kit cars. Customers have the option to choose from a $0-$10,000 deductible and a flexible payment plan. American Modern offers discounts for collector car owners to help them save money.

Different types of coverage

American Modern auto insurance offers impressive coverage for collector cars. These policy options are available:

  • Full coverage: American Modern sells full coverage insurance, which includes collision, comprehensive, liability and uninsured/underinsured motorist coverage. In some states, full coverage also includes personal injury protection (PIP), and medical payments coverage.
  • Accorded Value Loss Settlement: American Modern uses an agreed value coverage method to determine a vehicle’s value. The driver is paid for the agreed value of the vehicle, and not depreciation, if it is totaled.
  • Mileage plans for drivers: drivers who drive their collector cars regularly or daily can still receive coverage from American Modern. You can choose from plans for 1,000, 3,500, 6,000, or unlimited miles.
  • One liability policy: Drivers who insure multiple collector vehicles with American Modern are only responsible for one policy.
  • Coverage for spare parts: American Modern will pay drivers up to $2,000 for lost or stolen parts. There is also the option to increase the coverage.
  • Towing coverage If a vehicle is damaged, American Modern will pay $75 to tow it to an auto body shop.
  • Trip interruption coverage If a driver is left behind with a disabled vehicle at least 50 miles from their home, American Modern will pay $150 per day for transportation and hotel expenses.
  • Pet insurance: policyholders who own a pet can receive up to $750 for medical expenses if the pet is hurt in a car accident.
  • A new purchase coverage is available: If a driver buys a collector car worth $50,000 or less, it is automatically covered for 30 calendar days before being formally added to the policy.
  • Roadside assistance. American Modern offers nationwide roadside assistance with flatbed towing and lockout assistance. Fuel delivery is also available.
  • Glass coverage If a windshield is damaged and can be repaired rather than replaced, there is no deductible. This optional coverage is available.
  • International transport coverage: drivers have the option to get additional coverage to allow them to drive their vehicle abroad. This coverage is also available as an option.

Get Discounts

Drivers who purchase American Modern Classic car insurance can enjoy a variety of discounts and a lower premium. According to the company’s website, drivers can save up to 45% by using these discounts. These are the current discounts:

  • Storage for cars (security features/fire-resistant garage)
  • Car club membership
  • Anti-theft device
  • Accident prevention course

American Modern Home Insurance

American Modern home insurance is for homeowners who are not eligible for coverage from a preferred provider due to the state of their home and claims history. American Modern home insurance is described as “the middle ground” between comprehensive and basic coverage. There are a few discounts and add-on policies. American Modern home insurance policies include Actual Cash Value (ACV), and named perils coverage.

Different types of coverage

The American Modern Home Insurance policy provides sufficient coverage for those who are unable to get insurance from other providers. These coverage options are available:

  • Standard coverage: standard coverage from American Modern covers dwelling, personal property, liability, and additional living expenses. If damage is caused, the company will cover reasonable emergency repairs.
  • Coverage for mechanical breakdown: American Modern Home Insurance policies include mechanical breakdown coverage. This covers major appliances, HVAC systems, and electrical systems.
  • Full settlement for repair costs: This optional coverage will pay policyholders for home repairs, but not depreciation.
  • Water backup coverage: homeowners have the option to add additional coverage for water backup due to faulty pipes, drains or sewers.
  • Open perils coverage American Modern offers homeowners the option to purchase open perils coverage if they wish to upgrade their policy.

Get Discounts

American Modern doesn’t disclose discounts on its home insurance policies. The company offers flexible payment options. You have the option to sign up for automatic monthly payment, pay your annual premium in full, or pay quarterly installments.

American Modern Ratings and Reviews, Customer Satisfaction, Complaints, and Reviews

OrganizationAmerican Modern rating
AM BestA+ (Superior)
Better Business Bureau (BBB)A+
NAIC Company Complaint Index1.81 (higher than the average number of complaints)

American Modern Insurance’s parent company, Munich Re, has an A+ (Superior) rating from AM Best is a sign of financial strength. American Modern Insurance ratings do not reflect customer satisfaction.

The company received an A+ rating from BBB but it only has a score of 1.31 stars out of 5 stars, based on 29 customer reviews. Unhelpful agents, unplanned policy cancellations, and slow claim payouts were some of the complaints that customers had.

The poor customer satisfaction of American Modern is evident in the National Association of Insurance Commissioners (NAIC) Company Complaint Index. American Modern has more complaints than the average in the insurance industry.

American Modern: Why it’s a great option

American Modern auto insurance is a great option for collector car owners. There are many unique coverages included in every policy. There are also different plans that allow you to drive your car as often as you like, such an unlimited mileage plan.

American Modern home insurance can also be a great option for those who are unable to get home insurance through other providers. This insurance is beneficial to those with poor credit scores, long claim histories, or older homes. Although the coverage is very basic, it provides essential protection to those who truly need it.

American Modern Insurance’s biggest problem is its poor customer service reputation. This includes average customer complaints according to the NAIC Company Complaint Index, and negative reviews from BBB.

American Modern also offers additional policies

American Modern Insurance offers a wide range of insurance products. You can also find these policies:

  • Boat insurance
  • Landlord insurance
  • Insurance for motorcycles
  • Insurance for commercial auto rentals
  • Insurance for vacation homes
  • ATV/UTV insurance
  • Yacht insurance
  • Insurance for vacant property
  • Insurance for golf carts
  • Pet insurance
  • Snowmobile insurance
  • Personal watercraft insurance
  • Mobile home insurance

Most Frequently Asked Questions

Which is the best auto insurer?

Every driver will have their own opinion about the best car insurance company. It is determined by their budget and needs. Geico might be the best option for drivers looking for the lowest rates, while The Hartford might be more suitable for drivers who are interested in customizable coverage. You can find the best car insurance company by shopping around, comparing rates, coverage options and third-party ratings.

Which is the best company for home insurance?

Your needs and preferences will determine the best home insurer. Amica, Allstate and Travelers are some of the most highly rated homeowners insurance providers.

What is the cost of home insurance?

The average American homeowner pays $2305 annually for their home insurance. However, costs vary based on many factors such as age, credit score, coverage levels and claims history.