AAA vs. Cig: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for auto insurance, Cig offers significantly cheaper prices than AAA
• AAA may help you save more money -- they offer more discounts than CIG Insurance
• Cig offers more affordable premiums for single people who will be the only person on the insurance policy

AAA or Cig: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? You've probably seen commercials and billboards from companies offering large savings, but exactly how much money can you save by switching?

You might be considering AAA or Cig as your top options, but between the two, which one will offer you less expensive prices?

As you can see, Cig is quite a bit cheaper than AAA, with rates averaging $119 a month compared to $314 with AAA when looking at the national average rates for car insurance.

That being said, that doesn't mean Cig will necessarily be more affordable than AAA for every driver. After all, auto insurance carriers can offer drastically different rates to every driver depending on rating factors like your driving record, where you call home, your age, or even your credit score (among other things). So, at the end of the day, premiums from each carrier will differ quite a bit from person to person.

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

AAA vs. Cig: Average Car Insurance Rates by State

AAA and Cig only compete against each other in one states, with Cig offering less expensive rates to the average driver in all of them. California has the most noticable difference, where Cig premiums are $76 cheaper than insurance prices at AAA.

That being said, there's a lot more that goes into your car insurance bill than just where you call home. Read on to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- normally pay a lot for auto insurance compared to older drivers. Generally, that's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But that doesn't mean that teen drivers have to just accept sky-high car insurance rates. Just look at the table above -- where 18-year-old drivers who have Cig for their auto insurance pay almost 65% less than those who use AAA.

Even so, both companies will offer you dramatically lower premiums by the time drivers turn 25. Cig offers the steepest drop, with 25-year-olds paying less than half what 18-year-old drivers are charged. AAA's average rates drop nearly 60% during that same period.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll typically enjoy the most affordable insurance premiums you'll ever see. You've been on the road for years, and all that experience pays off when it comes to your monthly prices for car insurance.

So, which carrier offers the best rates to retired drivers? Cig gets the edge, with prices for drivers 65 and older almost 65% more affordable than the national average for AAA.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance premiums tend to be more expensive for single drivers than they are for married drivers. This usually boils down to married couples having more than one vehicle on their policy -- something lots of auto insurance carriers will reward with discounts.

For single policyholders, the difference in average prices between these two companies is significant, with Cig rates coming in at around a third of AAA's. The advantage for married policyholders with Cig is also obvious, where drivers save over 60% per month.

AAA or Cig: Average Rates by Gender

Men are statistically more likely than women to get pulled over for speeding or get into a collision. That means when it comes to insurance men will usually end up paying a little more.

On average, men see premiums more than 10% a month higher with AAA, and about 3% with Cig.

When it comes to the lowest rates for each gender, Cig comes out on top for both men and women. On average, women save about $180 per month and men save around $210 with Cig compared to the average AAA policyholder.

AAA vs. Cig: 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.

For most people, car insurance isn't the easiest topic to understand. Everyone needs auto insurance, but there are so many different terms and limits that it can be hard to find the right policy for you.

However, most policies end up falling into two different types of coverage -- liability coverage (which covers the other party's property damage and injuries if you cause an accident) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to what you get with liability coverage).

Looking specifically at state minimum limits for liability insurance, Cig has the significant edge, with average monthly prices coming in at $71. If you want a full coverage policy with the same state minimum limits, Cig again has the edge, with policies averaging about $166 a month to AAA's $459.

Is AAA or Cig Better for Drivers with Spotty Records?

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

You'll probably end up paying more with speeding tickets and collisions on your record, but which of these two carriers offers the most affordable premiums to drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their insurance can typically expect their monthly bill to go up around 29% after getting a speeding ticket. Cig policyholders can expect a less drastic increase of about 21%.

But Cig has cheaper prices for drivers in both categories. With CIG Insurance, drivers with a clean record can save around $125 per month and drivers with a ticket can save about $187 a month.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their auto insurance through AAA can expect to see around an $126 -- or about 37% -- rise in their insurance rates. Drivers who use Cig for their car insurance will see a monthly bill around $30 (or 25%) more expensive after reporting a collision to their auto insurance company.

At the end of the day, the less expensive premiums come from Cig, with average rates coming in at $118 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly car insurance bill -- usually a lot more than an accident or speeding ticket. AAA drivers usually see a 47% increase in their insurance prices after a DUI charge, while Cig will generally climb premiums by about 44%.

But if you end up with a DUI charge and are looking for more affordable rates, Cig tends to be more affordable for the average driver, with monthly premiums coming in at around $157 to AAA's $403.

How does Credit Score Impact AAA and Cig Rates?

In many cases, your credit score can come into play when companies determine your monthly bill. Certain states and carriers do not allow for credit score to be used as a car insurance factor, but it might come into play for a lot of drivers.

The reasoning auto insurance companies use is that policyholders with bad credit will be less likely to pay their bills on time; so normally, they'll be asked to pay more, while those with good credit will be rewarded with less expensive prices.

So, which carrier offers the best premiums for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, Cig will usually reward you the most. For policyholders with "excellent" credit scores, Cig comes in nearly 57.84 cheaper. Drivers with "good" credit scores generally save about 62% with Cig compared to average rates from AAA.

Which Company is Best for Drivers with Bad Credit?

Cig typically offers lower prices than AAA when it comes to drivers with a below average credit score. Drivers with "fair" credit pay around 61% per month less with Cig compared to AAA, and those with "poor" scores typically save an average of about 68% monthly.

Is AAA or Cig 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 car insurance cost? Normally, those who drive less will end up with more affordable premiums since there's less of a chance of causing a collision and filing an insurance claim.

For both remote workers and those taking short commutes, Cig offers cheaper prices than AAA. AAA average rates for drivers with 6,000 annual miles come in around $194 more expensive than Cig. Those who drive 12,000 miles yearly can expect to pay about $195 more with AAA over Cig.

AAA or Cig: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your vehicle can have a substantial impact on your monthly insurance payment. Typically, those who live in rural areas will pay less than drivers in urban areas since there are a lot fewer cars on the road where they live, which lowers the chances of an accident.

When comparing these two carriers side-by-side, Cig usually comes out as the cheapest option for drivers in all areas, regardless of if they're urban, suburban, or rural.

If you live in a rural area, you can expect to pay around $106 per month with Cig compared to AAA's $256. Drivers in suburban ZIP codes pay a monthly rate of about $123 with Cig compared to $301 with AAA. In urban areas, Cig's average premiums are around $128 while AAA offers prices about $384.

AAA vs. Cig 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. That's where car insurance discounts comes into play.

But where do you even start? With what seems like a million different discounts out there, it may be hard to find all the ones you can take advantage of.

Luckily, we did the hard work for you and looked at all of the different discounts AAA and Cig offer their customers so that you can easily see which company offers the most discounts and, therefore, the largest savings.

AAA blows Cig away when it comes to the sheer amount of discounts available, offering 33 different discounts to Cig's 25.

There are a couple discounts both companies offer, but AAA also offers discounts for AAA, academic, COVID-19 relief, and more.

On the other hand, Cig has a few proprietary discounts of their own for things like ABS discounts, company car discounts, good payer discounts, and more.

Final Thoughts: Is AAA or Cig Best for You?

You've seen the effect certain variables have on your insurance and the different discounts carriers offer. But, at the end of the day, which company is the best company for you and your specific profile and needs?

Cig might be best for you if....

• You're worried about the impact your credit score will have on your rates.
• You want the most robust protection via a "full coverage" policy.
• You're of retirement age and want to take advantage of lower premiums.

AAA might be best for you if...

• You're looking for discounts -- Aaa has the most.

Hopefully, this guide has ben a valuable resource as you compare AAA and Cig and that it aids in making a more informed decision about your auto insurance.

At the end of the day, the best way to make sure you're getting the best deal on your insurance policy is to compare quotes from a handful of companies, not just AAA and Cig. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP code below and get free quotes from dozens of the top car insurance carriers in your area, all in just a few minutes.

AAA vs. Cig FAQs

Is AAA or Cig cheaper?

Cig is the less expensive of the two companies when looking at national average prices, with policies averaging $119 a month with Cig and $314 for AAA. Even so, that doesn't mean Cig will be the lowest carrier for every policyholder, since there are multiple different factors that are considered when it comes to your auto insurance cost.

Who is better, AAA or Cig?

Sadly, the only answer we can give you is "it depends.". No one company is "better" for each policyholder -- it all depends on what your unique insurance profile looks like.

Why do AAA and Cig offer me different rates?

Car insurance carriers use several different variables when determining the rates they charge. Factors such as your driving record, gender, where your home is, age, and sometimes even things like your credit score can all come into play. Both AAA and Cig calculate premiums using different formulas, so it's likely they'll offer different rates. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from many different companies.

How do I know if AAA or Cig is right for me?

The only way to find the auto insurance company that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your information once 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 price. And maybe you'll find that the best carrier for you isn't AAA or Cig at all, but another you hadn't even thought of!

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.