If you are looking for a home or car insurance policy that covers your unique needs, you might want to consider American Modern Insurance. This company specializes in providing insurance for high-risk homes and cars that may have been rejected by other insurers due to age, location, condition, or claims history. In this article, we will review the pros and cons of American Modern Insurance, as well as the cost, discounts, and customer service ratings.
What is American Modern Insurance?
American Modern Insurance is a subsidiary of Munich Re, one of the world’s largest reinsurance companies. It was founded in 1965 and is headquartered in Cincinnati, Ohio. The company operates in all 50 states and Washington, D.C., and has over 1.7 million policyholders. It has an A+ financial strength rating from AM Best, which means it has a superior ability to pay claims.
American Modern Insurance offers a variety of insurance products, including home, car, boat, motorcycle, collector car, mobile home, vacant home, and rental property insurance. It also offers umbrella liability, pet, and travel insurance. However, it is best known for its home and car insurance policies that cater to high-risk customers.
What are the benefits of American Modern Insurance?
One of the main benefits of American Modern Insurance is that it covers homes and cars that may not qualify for standard insurance policies. For example, it offers home insurance for older homes, homes in high-risk areas, homes with prior claims, homes with outdated features, and homes that are vacant, rented, or used as vacation properties. It allows customers to choose an agreed value loss settlement, which means they will receive the full amount of their car’s value in case of a total loss.
Another benefit of American Modern Insurance is that it offers a wide range of coverage options and policy add-ons. For home insurance, it offers open peril protection, which covers any cause of loss that is not specifically excluded, and replacement cost settlement, which pays the actual cost of repairing or replacing your home without deducting depreciation. It also offers optional coverages for identity theft, water backup, equipment breakdown, service line, and personal injury. For car insurance, it offers optional coverages for roadside assistance, rental reimbursement, trip interruption, spare parts, and pet injury.
What are the drawbacks of American Modern Insurance?
One of the main drawbacks of American Modern Insurance is that it can be more expensive than traditional insurers. This is because it covers high-risk homes and cars that are more likely to incur losses. It also charges higher deductibles and has lower coverage limits than some competitors. For example, its home insurance policy has a minimum deductible of $1,000 and a maximum coverage limit of $1 million. Its car insurance policy has a minimum deductible of $500 and a maximum coverage limit of $250,000 per person and $500,000 per accident for bodily injury liability.
Another drawback of American Modern Insurance is that it has mixed customer service ratings. According to Clearsurance, a website that collects customer reviews of insurance companies, American Modern Insurance has an average rating of 3.8 out of 5 stars, based on 104 reviews. Some customers praised the company for its fast and fair claims handling, while others complained about its poor communication, delayed payments, and denied claims. According to the National Association of Insurance Commissioners (NAIC), American Modern Insurance received 20% fewer customer complaints than other companies of its size in 2020, which indicates a better-than-average performance.
How much does it cost?
The cost of American Modern Insurance depends on several factors, such as the type, age, condition, and location of your home or car, your personal information, your coverage options, and your discounts. To give you an idea, here are some average annual premiums for American Modern Insurance, compared to the national average, based on data from MoneyGeek and Bankrate:
| Insurance Type | Coverage Limit | American Modern Average Premium | National Average Premium |
|---|---|---|---|
| Home Insurance | $150,000 | $999 | $975 |
| Home Insurance | $250,000 | $1,560 | $1,428 |
| Home Insurance | $350,000 | $2,119 | $1,879 |
| Car Insurance | State Minimum | $1,068 | $565 |
| Car Insurance | 50/100/50 | $1,178 | $684 |
| Car Insurance | 100/300/100 | $1,382 | $1,005 |
As you can see, American Modern Insurance is more expensive than the national average for both home and Car Insurance. However, it may be worth the extra cost if you have a high-risk home or car that needs specialized coverage.
How can you save money?
American Modern Insurance offers several discounts to help you lower your premium. For home insurance, you can get discounts for having a burglar alarm, a fire alarm, a sprinkler system, a new roof, a hail-resistant roof, or a wind mitigation device. You can also get discounts for being a loyal customer, paying your premium in full, having multiple policies, or having no claims. For car insurance, you can get discounts for having a good driving record, completing a defensive driving course, having a low mileage, having an anti-theft device, or having multiple cars.
To find out how much you can save on American Modern Insurance, you can get a quote online or contact an agent. You can also compare quotes from different insurers to see which one offers the best value for your needs.
Is American Modern Insurance right for you?
The company is a good option for homeowners and car owners who have high-risk properties that may not be eligible for standard insurance policies. It offers specialized coverage for older homes, homes in high-risk areas, homes with prior claims, homes with outdated features, and homes that are vacant, rented, or used as vacation properties. It has a strong financial rating, a wide range of coverage options, and a better-than-average customer complaint ratio.
However, the company is not the best option for homeowners and car owners who are looking for low-cost or typical policies. It can be more expensive than traditional insurers, and it has lower coverage limits and higher deductibles than some competitors. It also has mixed customer service ratings, and some customers have reported issues with its communication, payments, and claims.
Ultimately, the best insurance company for you depends on your personal situation, preferences, and budget. You should compare different insurers and policies before making a decision. One can use online tools, such as Policygenius, Bankrate, or MoneyGeek, to find and compare quotes from the company and other companies. You can also read customer reviews, such as those on Clearsurance, to get a sense of the quality and reliability of each company. By doing your research, you can find the best insurance policy for your high-risk home or car.
