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

Quick Facts

• Looking at the national averages for insurance, Cig offers cheaper premiums than American Family
• Cig has more affordable prices for policyholders who don't have any speeding tickets, DUIs, or at-fault collisions on their record
• Cig tends to be a much less expensive option for policyholders who live in urban areas

American Family or Cig: Which Company has the Cheapest Car Insurance?

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

You might have narrowed it down to American Family or Cig as potential options, but between the two, which carrier has more affordable premiums for auto insurance?

As you can see, Cig is around $21 a month cheaper than American Family when looking at the national average rates for car insurance.

That being said, that doesn't necessarily mean Cig will be the less expensive option for every driver. After all, insurance carriers can offer drastically different rates to every driver depending on rating factors like your age, your driving record, your credit score, or even where you call home (among other things), so rates will vary quite a bit from person to person.

Luckily, we've broken down average prices from both American Family and Cig by a variety of different rate factors, so read on to find out which carrier is the best for you.

American Family vs. Cig: Average Car Insurance Rates by State

American Family and Cig only compete against each other in three states, with American Family offering cheaper rates to the average driver in all of them. Oregon has the most noticable difference, where Cig prices are $80 less expensive than car insurance premiums at American Family.

But there's more to insurance than just the state you live in. As we mentioned above, there's a lot of things that go into how auto insurance companies determine your prices. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. The reason is that teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean teen drivers can't still save money on their car insurance. Just look at the table above -- where 18-year-old drivers who have Cig for their auto insurance pay over 25% less than those who use American Family.

But both carriers will offer you dramatically lower rates 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. American Family's average premiums lower more than 60% during that same period.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest prices out there.

When looking at American Family and Cig specifically, which company is best for retired drivers? Cig gets the edge here, with average premiums coming in at about $86 monthly compared to American Family's $107.

Which is the Best Company for Married Drivers?

Single policyholders tend to get offered slightly more expensive auto insurance rates than married policyholders. That's typically because married drivers tend to own and insure several vehicles, which can often earn you a discount.

For single drivers, the difference in average premiums between these two companies is significant, with Cig rates coming in at around 15% less than American Family's. The advantage for married couples with Cig is also obvious, where drivers save about $15 per month.

American Family or Cig: Average Rates by Gender

Men usually pay more for car insurance than women. This is because men are statistically more likely than women to get into a collision or get pulled over for speeding, which leads to increased risk for insurers and, therefore, higher prices.

Women normally pay around $5 a month less than men with American Family, and about $4 with Cig.

Looking at overall affordability, Cig offers the most affordable average premiums for both men and women. On average, male drivers save about $22 per month and women save around $21 with Cig compared to the average American Family policyholder.

American Family 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.

It's no secret that auto insurance can be a complicated subject for most people. There are a bunch of different coverages that account for multiple different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause an accident.

The two most common policies end up falling into two different types of coverage -- liability coverage (which provides property damage and bodily injury coverage for other drivers if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to liability).

Looking specifically at state minimum 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 American Family's $185.

Is American Family 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 accidents on your record, but which of these two carriers offers the lowest rates to drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Family for their insurance can typically expect their monthly bill to go up around 20% after getting a speeding ticket. Cig policyholders can expect a bit more drastic of an increase of about 21%.

Even so, Cig tends to offer the best prices for drivers both with a ticket and with a clean record, offering prices that are 25% and 24% more affordable, respectively, compared to American Family Insurance.

Which Company is Best for Drivers After an Accident?

American Family drivers who get in an accident can expect to see their rates increase by $20, while those who have insurance through Cig will see around a $30 increase.

At the end of the day, the less expensive premiums come from Cig, with average prices coming in at $118 compared to American Family Insurance's $138.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your auto insurance bill. On average, Cig will raise your premiums about 44% after a DUI, while American Family's average rates climb by more than 25%.

But if you end up with a DUI charge and are looking for more affordable prices, Cig tends to be cheaper for the average driver, with monthly premiums coming in at around $157 to American Family's $158.

How does Credit Score Impact American Family and Cig Rates?

Did you know many insurance companies take your credit score into account when determining rates? This isn't true for everyone (California, for example, has banned the use of credit score as an auto insurance factor) but it does affect many policyholders out there.

Car insurance carriers argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, drivers with good credit will often be rewarded with more affordable premiums.

Looking at American Family and Cig specifically, which company has the cheapest rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American Family or Cig 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 your monthly insurance payment. Generally, the more milage you put on your vehicle each year, the more you can expect to pay for coverage.

For both remote workers and those taking short commutes, Cig offers less expensive premiums than American Family. Cig's average prices for drivers with 6,000 annual miles come in about 18% more affordable than American Family. Those who drive 12,000 miles each year can expect to pay around 13% less with Cig over American Family.

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

Where you call home can have a sizable impact on your monthly car insurance bill. Usually, those who live in urban areas will pay more than drivers in rural areas since there are a lot more cars on the road where they live, which increases the chances of an accident.

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

For policyholders in urban ZIP codes, CIG Insurance's average premiums are about 23% less than American Family Insurance. People who live in suburban areas pay around 8% less with Cig compared to American Family. Those in rural areas can expect to save about 12% with Cig compared to American Family.

American Family 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, and the best way to do that is by taking advantage of as many insurance discounts as possible.

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

Luckily, we did the hard work for you and looked at all of the different discounts American Family and Cig offer their customers so that you can see which one offers the most discounts and see which ones you might be able to take advantage of.

Overall, Cig has the advantage when it comes to total number of discounts. American Family offers a grand total of 21 discounts, while Cig has 25.

Both companies offer quite a few of the same discounts -- like anti-theft discounts, distant student discounts, discounts for being a good student, and discounts for insuring multiple cars with the same company -- but Cig also offers discounts for ABS, company car, employee discount, and more.

On the other hand, American Family has a few proprietary discounts of their own for things like connect partner discounts, COVID-19 relief discount, DRL discounts, and more.

Final Thoughts: Is American Family or Cig Best for You?

So, we've broken down the average prices for many of the factors auto insurance carriers look at, and walked through the different discounts each company offers, too. But, when it comes down to it, is American Family or Cig the right company for you and your specific driver profile?

Cig might be best for you if....

• You have received a ticket within the last few years.
• You care about discounts (Cig offers the most).
• You and your spouse are buying car insurance together.

American Family 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 good idea of the differences between American Family and Cig 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 multiple companies, not just American Family and Cig. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of top auto insurance carriers in your area, all in just a few minutes.

American Family vs. Cig FAQs

Is American Family or Cig cheaper?

Cig is the cheaper of the two companies when looking at national average premiums, with policies averaging $119 per month with Cig and $140 for American Family. However, that doesn't mean Cig will be the cheapest carrier for every driver, since there are several different variables (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, American Family or Cig?

Sadly, the only answer we can give you is "it depends.". No one company is "better" for everyone -- it all boils down to your unique car insurance profile.

Why do American Family and Cig offer me different rates?

Auto insurance carriers use a lot of different factors when calculating the rates they charge. Things such as gender, age, where you park your vehicle, your driving record, and sometimes even things like your credit score can all be used. Both American Family and Cig calculate prices differently, 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 American Family or Cig is right for me?

The only way to find the 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 ZIP code and you'll get quotes from dozens of your local top car insurance companies for free. With those, you can guarantee you're getting the lowest premium. And maybe you'll find that the best carrier for you isn't American Family 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.