AIG vs. State Farm: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for car insurance, State Farm offers significantly less expensive rates than AIG
• State Farm offers cheaper average premiums for drivers with a DUI
• State Farm offers more affordable prices for policyholders who live in the suburbs

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AIG or State Farm: Which Company has the Cheapest Car Insurance?

Are you in the market for a new insurance policy? With so many ads from all sorts of companies offering big savings, you're probably wondering exactly how much you might be able to save.

You might have narrowed it down to AIG or State Farm as potential options, but between the two, which one will offer you more affordable rates?

Looking at the national average rates for both carriers, State Farm is quite a bit cheaper than AIG, with premiums averaging $158 a month compared to $267 with AIG.

Even so, that doesn't mean State Farm will necessarily be less expensive than AIG for every driver. Insurance companies vary their prices depending on things like how clean your driving record is, how old you are, where you live, how good your credit score is, and tons of other factors. So, at the end of the day, rates from every carrier will differ quite a bit from person to person.

Wanting to know if AIG or State Farm is really the right company for you? Keep on reading to see how average premiums can change based on all of the factors we've mentioned above.

AIG vs. State Farm: Average Car Insurance Rates by State

AIG and State Farm only compete against each other in Florida, where State Farm offers the cheaper average prices. State Farm drivers tend to pay about $67 per month less on average compared to drivers who use AIG for their car insurance.

That being said, there's a lot more that goes into your auto insurance cost than just where you live. Keep reading to learn more.

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Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. That's because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

However, that doesn't mean that teen drivers have to just accept sky-high car insurance rates. For example, 18-year-old drivers pay an average of over 15% less a month by choosing State Farm over AIG.

That being said, both carriers will drop premiums by the time you turn 25. State Farm offers the steepest reduction, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. AIG's average rates lower almost 35% during that same period.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll normally enjoy the cheapest auto insurance premiums you can find. You've been on the road for years, and all that experience pays off when it comes to your monthly prices for insurance.

So, which carrier offers the best rates to retired drivers? State Farm gets the edge, with premiums for drivers 65 and older nearly 50% cheaper than the national average for AIG.

Which is the Best Company for Married Drivers?

You may not be aware, but car insurance prices tend to be more affordable for married policyholders than they are for single policyholders. That's because policies for married drivers typically cover more than one vehicle, which many companies will give you a discount for.

For single drivers, the difference in average premiums between these two carriers is significant, with State Farm prices coming in at a third less than AIG's. The advantage for married couples with State Farm is also obvious, where drivers save around $100 per month.

AIG or State Farm: Average Rates by Gender

Did you know women usually pay less for auto insurance than men? That's because women are less likely to get into collisions and get tickets, which decreases the chances of filing a claim with insurance.

With AIG, men normally pay about $15 a month more than women, and more than $10 with State Farm.

Looking at overall affordability, State Farm comes out as the lowest option for both genders. On average, male drivers save about $110 per month and women save around $107 with State Farm compared to the average AIG policyholder.

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AIG vs. State Farm: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

Insurance can be a complicated subject for most people. Everyone needs car insurance, but there are so many different limits and terms that it can be hard to find the right policy for you.

But most policies that drivers look at fall into two categories -- liability coverage (which provides bodily injury and property damage coverage for other drivers and their passengers if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, alongside what you get with a liability policy).

Looking specifically at state minimum limits for liability insurance, State Farm has the edge, with average monthly rates coming in at $99. If you want a full coverage policy with the same state minimum limits, State Farm again has the edge, with policies averaging about $216 a month to AIG's $405.

Is AIG or State Farm Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their auto insurance. But that's not to say you can't save money if you don't have the best driving record, either.

Collisions and speeding tickets will most likely raise your prices, but is AIG or State Farm cheaper for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AIG for their insurance can typically expect their monthly bill to go up around 25% after getting a speeding ticket. State Farm policyholders can expect a less drastic increase of about 14%.

However, State Farm has more affordable premiums for drivers in both categories, offering rates that are $88 and $140 less expensive, respectively, compared to AIG.

Which Company is Best for Drivers After an Accident?

AIG drivers who get in an accident can expect to see their prices increase by over 25%, while those who have insurance through State Farm will see around a 20% increase.

At the end of the day, drivers who use State Farm end up with the cheaper prices after an accident, with average premiums coming in at $163 compared to AIG's $305.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple ticket or even a collision. On average, State Farm will raise your rates about 25% after a DUI, while AIG's average prices rise by nearly 10%.

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How does Credit Score Impact AIG and State Farm Rates?

Did you know many car insurance companies take into account your credit score when determining rates? This isn't true for everyone (Hawaii, for example, has banned the use of credit score as an insurance factor) but it will come into play for several policyholders.

Auto insurance carriers argue that those with good credit scores are more likely to pay their bills on time each month, which reduces the risk involved on their end, while the opposite is true for those with bad credit.

So, which company offers the most affordable premiums for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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Is AIG or State Farm Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a pretty big impact on your monthly prices? Generally, those who drive fewer miles will end up with cheaper rates since there's less of a chance of causing an accident and filing an insurance claim.

For both remote workers and those taking short commutes, State Farm offers more affordable premiums than AIG. State Farm average prices for drivers with 6,000 annual miles come in more than $100 less expensive than AIG. Those who drive 12,000 miles annually can expect to pay over $100 less with State Farm over AIG.

AIG or State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for insurance, but the type of area you live in can have a considerable impact as well. Usually, if you live in a rural area with fewer cars on the road, you'll pay a little less for car insurance, while the opposite is true for people in urban areas.

State Farm tends to offer the lowest prices for drivers in every type of area, no matter if it's urban, suburban, or rural.

Those in rural areas can expect to save around 32% with State Farm compared to AIG. People who live in suburban areas pay about 43% less with State Farm compared to AIG. For policyholders in urban ZIP codes, State Farm's average rates are around 44% less than AIG.

AIG vs. State Farm Discounts

No matter why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by taking advantage of as many car insurance discounts as possible.

The challenging part is finding all of the discounts you're eligible for, since it can feel sometimes like every company has different discounts and each one is advertised differently.

Luckily, we did the hard work for you and compared all of the different discounts offered by AIG and State Farm so that you can see which company offers the most discounts and see which ones you might be able to take advantage of.

State Farm blows AIG away when it comes to the sheer amount of discounts available, offering 23 different discounts to AIG's 13.

A couple of those are overlapping for things like anti-theft discounts, distant student discounts, and discounts for being a good driver. State Farm also offers discounts for annual mileage, drive safe & save, driver training, and more.

On the other hand, AIG has a few proprietary discounts of their own for things like advance quote discounts, guard gated discounts, hybrid vehicle discounts, and more.

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Final Thoughts: Is AIG or State Farm Best for You?

So, you've seen how different variables can affect your auto insurance premiums. We've broken down the different discounts each carrier offers, too. But, when it comes down to it, which insurance company is the best carrier for you and your specific needs?

State Farm might be best for you if....

• You have a speeding ticket on your driving record.
• Your credit score is high.
• You're of retirement age and want to take advantage of lower prices.

AIG might be best for you if...

• You have a more unique driver profile than those we mentioned above.

Hopefully, this guide helps you get a better idea of the difference between AIG and State Farm and that it aids in making a more informed decision about your insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on car insurance -- comparing quotes from several companies, not just AIG and State Farm. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get multiple free quotes from some of the best auto insurance carriers in your area, all in just a few minutes.

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AIG vs. State Farm FAQs

Is AIG or State Farm cheaper?

State Farm is the more affordable of the two companies when looking at national average rates, with policies averaging $158 per month with State Farm and $267 for AIG. That being said, that doesn't mean State Farm will be the most affordable carrier for everyone, since there are a variety of different factors that are considered when it comes to your insurance payment.

Who is better, AIG or State Farm?

Unfortunately, the only answer we can give you is "it depends.". No one company is necessarily "better" for every policyholder -- it all comes down to what your unique auto insurance profile looks like. For example, AIG is less expensive for drivers who have less-than-stellar credit scores, while State Farm offers cheaper premiums for drivers with an at-fault collision on their record.

Why do AIG and State Farm offer me different rates?

Insurance carriers use quite a few different variables when calculating the prices they charge. Factors such as where you park your vehicle, gender, age, where you live, and sometimes even things like your credit score can all be used. Both AIG and State Farm calculate rates using different variables, so it's likely they'll offer different premiums. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from lots of different companies.

How do I know if AIG or State Farm is right for me?

The only way to find the car insurance company that's right for you is by getting quotes from multiple carriers and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code and you'll get quotes from dozens of your local top insurance companies for free. With those, you can guarantee you're getting the best premium. And maybe you'll find that the best carrier for you isn't AIG or State Farm at all, but another you hadn't even thought of!

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Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.