Aig vs. Direct Auto: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for car insurance, Direct Auto offers significantly less expensive prices than Aig
• Direct Auto offers more affordable average premiums for drivers who have received a ticket within the last few years
• Direct Auto tends to be a much cheaper option for people who are single and purchasing auto insurance by yourself

Aig vs. Direct Auto: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. With so many ads from all sorts of companies offering hefty discounts, you're probably wondering exactly how much you might be able to save.

You might have narrowed it down to Aig or Direct Auto as your top options, but which company will offer you more affordable prices?

As you can see, Direct Auto is quite a bit cheaper than Aig, with rates averaging $170 per month compared to $267 with Aig when looking at the national average rates for car insurance.

But Direct Auto may not be the most affordable or best option for every single driver out there. Insurance companies use a ton of complex algorithms to calculate premiums, so depending on how clean your driving record is or how good your credit score is (among quite a few other factors), you could see wildly different rates from the ones above.

Wanting to know if Aig or Direct Auto 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 or Direct Auto: Average Car Insurance Rates by State

Aig and Direct Auto only compete against each other in Florida, where Direct Auto offers the cheaper average prices. For Florida residents, Direct Auto offers auto insurance for $243 a month on average. Aig's average premiums come out to be more expensive, at $267 monthly.

But there's more to calculating insurance prices than just your home state. Read on to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for car insurance than any group out there on the road. The reason is that young, inexperienced drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

That being said, that doesn't mean teen drivers can't still save money on their auto insurance. For example, 18-year-old drivers pay an average of more than $50 less a month by choosing Direct Auto over Aig.

Even so, both carriers will reduce rates by the time you turn 25. For example, average premiums for Aig policyholders lower nearly 35% and Direct Auto's prices decrease over 55% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age usually enjoy some of the lowest car insurance rates out there. After all, they've likely been driving for quite some time, which generally lowers their chances of accidents and other infractions that can increase prices.

But who has the best premiums for retired drivers between Aig and Direct Auto? Direct Auto gets the edge, with rates for drivers 65 and older $95 less expensive than the national average for Aig.

Which is the Best Company for Married Drivers?

Married drivers tend to get slightly cheaper insurance premiums than those who are single. That's normally because married policyholders tend to own and insure multiple cars, which can often earn you a discount.

When it comes to relationship status, Direct Auto is the clear winner for single policyholders, with prices about $88 per month more affordable than Aig, on average. The advantage is also clear for married couples - Direct Auto offers the most affordable average rates.

Aig vs. Direct Auto: Average Rates by Gender

Did you know men tend to pay more for car insurance than women? This is because men are statistically more likely than women to cause a collision and get into accidents, which leads to increased risk for insurers and, therefore, higher premiums.

With Aig, women typically pay around $15 a month less than men, and about $4 cheaper with Direct Auto when compared to their male counterparts.

Looking at the data for each carrier specifically, Direct Auto offers the cheapest average rates for both men and women, with average prices 37% less for men and 35% cheaper for women.

Aig or Direct Auto: 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, insurance can be pretty complicated. There are so many different terms and coverages that it can make it pretty confusing to find the right policy.

However, most policies that many drivers look at fall into two categories -- liability only (which provides property damage and bodily injury coverage for other drivers and passengers if you cause an accident) and full coverage (which usually refers to having comprehensive and collision coverages in addition to what you get with liability).

If you're looking for state minimum liability insurance, Direct Auto generally offers significantly cheaper premiums of $96 compared to Aig's $129. When it comes to full coverage policies with similar limits, Direct Auto again has the edge, with policies around $150 per month less expensive than Aig, on average.

Is Aig or Direct Auto Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their auto insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

It's no secret secret that tickets and at-fault collisions lead to higher prices, but which company -- Aig or Direct Auto -- has the lowest rates for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Aig policyholders can expect their premiums to go up an average of $73 a month if they get a ticket, while Direct Auto normally raises rates about $38 per month, on average.

But Direct Auto tends to offer the best prices for both drivers who have a recent speeding ticket and those with clean records, offering prices that are $79 and $114 more affordable, respectively, compared to AIG.

Which Company is Best for Drivers After an Accident?

Aig drivers who get in a collision can expect to see their rates rise by over 25%, while those who have insurance through Direct Auto will see around a 25% increase.

Overall, drivers who use Direct Auto end up with the cheaper prices after an accident, with monthly prices averaging $190 compared to AIG's $305.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your insurance bill. For example, Aig increases average premiums by just under $25 a month -- that's just under a 10% increase.

If you have a DUI on your record and are looking for more affordable prices, Direct Auto tends to be the much less expensive option with average rates of $165 per month compared to $246 from Aig.

How does Credit Score Impact Aig and Direct Auto Rates?

You may not have known, but your credit score can come into play when companies determine your monthly bill. This isn't always the case (for example, Massachusetts and Michigan are two states that ban the practice entirely), but it might come into play for a lot of policyholders.

The reasoning car insurance carriers use is that drivers with bad credit will be less likely to pay their bills on time; so typically, they'll be asked to pay more, while those with good credit will be rewarded with cheaper premiums.

So, which carrier offers the cheapest rates for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have great credit, you'll usually find a better deal with Direct Auto. Drivers with "excellent" credit can save over 35% compared to Aig, and those with "good" scores can also expect to see savings -- about $96 or 37% more affordable each month.

Which Company is Best for Drivers with Bad Credit?

Direct Auto typically offers lower premiums than Aig when it comes to drivers with a below average credit score. Drivers with "fair" credit pay around $96 per month less with Direct Auto compared to Aig, and those with "poor" scores generally save an average of about $105 monthly.

Is Aig or Direct Auto Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in how much auto insurance companies will charge for coverage. That's because the more miles you drive, the more likely you are to get into an accident and cause an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Direct Auto charges. However, there's a small difference in monthly prices for Aig, with policyholders who drive 6,000 miles every year paying around $8 less each month compared to those who drive 12,000 miles annually. Still, Direct Auto is the cheaper option for drivers in both categories.

Aig vs. Direct Auto: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can play a pretty big role in how much you pay for car insurance. Normally, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers due to the number of vehicles that are on the roads in those areas.

Direct Auto tends to offer the most affordable prices for drivers in every type of area, no matter if it's urban, suburban, or rural.

For policyholders in urban ZIP codes, Direct Auto offers rates about $226 a month compared to Aig's $330. People who live in suburban ZIP codes can expect to pay around $168 a month for Direct Auto and $284 for Aig. Lastly, those in rural areas tend to get the lowest premiums from both carriers, with average monthly prices coming in at $116 and $187 for Direct Auto and Aig respectively.

Aig vs. Direct Auto Discounts

You want to save as much money as possible, right? The best way to do that is by utilizing as many auto insurance discounts as you can.

But with what seems like a million different discounts out there, it can be difficult to nail down the carrier that has the most discounts for your unique driver profile and to find all the discounts you qualify for.

Below, we've broken down all of the different discounts offered by both Aig and Direct Auto so that you can see which carrier offers the most discounts and see which ones you might be able to take advantage of.

Direct Auto blows Aig away when it comes to the sheer amount of discounts available, offering 19 different discounts to Aig's 13.

Both companies offer lots of the same discounts -- like ABS discounts, advance quote discounts, and discounts for being a defensive driver -- but Direct Auto also offers bike policy discounts, EFT discounts, good student discounts, and more that Aig does not.

On the flip side, Aig has a couple unique discounts of its own -- distant student discounts, guard gated discounts, hybrid vehicle discounts, and more.

Final Thoughts: Is Aig or Direct Auto Best for You?

So, you've seen how different factors can affect your insurance rates. We've shown you all the discounts each company offers, too. That's all well and good, but when it comes down to it, is Aig or Direct Auto the best fit for you?

Direct Auto might be best for you if....

• You're single and purchasing auto insurance by yourself.
• You're looking for more protection with "full coverage" insurance.
• You're married and plan to have both of your names on the vehicle's car insurance policy.

Aig might be best for you if...

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

We hope this guide has ben a valuable resource as you compare Aig and Direct Auto. We also hope we've given you the information you need to make the best decision about your auto insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your insurance policy is to compare quotes from multiple carriers, not just Aig and Direct Auto. Luckily, sites like Compare.com make 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 companies in your area, all in just a few minutes.

Aig vs. Direct Auto FAQs

Is Aig or Direct Auto cheaper?

Looking just at the national average prices, Direct Auto is the less expensive of the two carriers, offering average rates of $170 per month compared to $267 for Aig. However, Direct Auto won't necessarily be the most affordable carrier for every driver, since there are several different variables (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, Aig or Direct Auto?

Sadly, the only answer we can give you is "it depends.". No one company is necessarily "better" for everyone -- it all depends on the makeup of your unique insurance profile.

Why do Aig and Direct Auto offer me different rates?

Auto insurance companies take a look at lots of different factors when calculating the premiums they charge drivers. Things such as gender, age, your driving record, where you park your car, and sometimes even things like your credit score can all be used. Both Aig and Direct Auto calculate rates differently, so each one will most likely offer different premiums. The only real way to see which carrier is the cheapest for you is by comparing personalized quotes from lots of different carriers.

How do I know if Aig or Direct Auto is right for me?

The only way to find the car insurance company that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your area information and you'll get free quotes from dozens of the best auto insurance carriers in your area. With those, you can guarantee you're getting the best rate. And who knows, the best carrier for you might not be Aig or Direct Auto at all!

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.