AIG Insurance Review

AIG is one of the oldest of all insurance companies. They are big and presently offer insurance in policies in 80 countries. However, it remains to be seen how effective they are as a US insurer. In 1919 a man by the name of Cornelius Vanderstarr started an insurance agency in Shanghai called the American Asiatic Underwriters, but this was just the beginning of his foray into insurance.

It wasn’t until 1921 When Vanderstarr took a trip to New York and looked to the American International Underwriters organization to help him branch out to represent and operate with other US-based companies. It wasn’t until 1940 that Vanderstarr moved headquarters from Shanghai to New York, which was a temporary transition at the time.

Because of the growing threat of World War II, agencies in other countries that were right in the middle of the conflict were limited and reduced operations in much of Western Europe. However, Vanderstarr still sought to expand AIU somehow, and the answer was to set up and run a headquarters that was regional to Central America, and the actual location was in Cuba.

In 1948 AIRCO (American Reinsurance Company, Inc.) became the parent company of AIU, and both were formed by Vanderstarr for the purpose of growth potential. In 1967 AIRCO formed the American International Group and signified a major change and restructuring of what Vanderstarr’s original vision was, and eventually, within that same year, Maurice Raymond Greenberg took the title of CEO.

The 1970s was a completely new era of business in the US and abroad and eventually would see a 20% percent growth in business across all its subsidiary insurance companies. As AIG primarily provides life insurance policies and coverage, one of its key competitors in North America. Both companies have been well-established in providing great rates, but let’s further break down the metrics of each.

In this section, we will go over both rates of coverage for Men and Women. For an average monthly rate and an average of $100k/20-year plans. Here’s a good overview of some Home insurance pricing:

For Men/ AIG vs. North American Monthly Rate for Life Insurance

AgeAIG $100k/20 Year RateNorth Am Average $100k/ 20 Year Rate

For Men, the rates of younger customers are way more comparable for both AIG and North American, but, North American provides the same rate for men aged 25-35. And these are numbers provided with non-smokers in mind, but the price could depend on other factors.

For Women /AIG vs. North American Monthly Rate for Life Insurance

AgeAIG $100k/20 year rateNorth American avg, $100k/20 year rate

For Women, the numbers are altogether lower by almost a dollar per month, and this is also for non-smoking females. It isn’t until 50 years and up that the prices get substantial. 

For both men and women in North America, on average, the price will be higher. For men, pricing is higher because men tend to make up the part of the workforce where risk is higher. Even with those considerations, your rates may be completely different. 

Home Insurance Overview

The offerings that AIG is varied. They offer luxury insurance but are also called a Private Client Group Coverage. Here are some of the main policy add-ons:

Dwelling: This coverage protects your home in the case of a covered incident and covers the cost of an unplanned accident that could affect your home, and coverage will include the rebuilding and reconstruction of the home.

Other structures: If structures outside of your home, like a detached garage or any other outbuilding, are damaged in a covered incident, they would be protected as well.

Personal property: This ensures that your belongings are protected against a loss in a covered incident. This includes anything in or around your home that is not structured.

Loss of use: In the case that you cannot stay in your home after a covered incident, this coverage will help cover the costs of where you’ll live while your home is being repaired.

Personal liability: If a guest in your home or their belongings are damaged in your home, you’ll be protected from any legal costs and medical costs. 

Medical payments: This covers the costs incurred from any medical bills for you and extends to your guests in the case of a covered incident.

Here are some additional coverages that are standard with the base policy AIG provides and include: 

Guaranteed replacement cost: This coverage provides specific replacement costs for damaged parts, such as plumbing or roof costs.

Extended replacement cost: This is an extra layer of coverage that can help with rebuilding costs.

Personal property replacement cost: Your personal belongings are guaranteed to get replaced with their original value when a covered incident happens.

Contents away from premises coverage: A unique point of coverage is when you are traveling, all of what you are carrying is covered. This might be useful in specific cases such as moving. 

Auto Insurance Overview

The American International Group (AIG) is one of the world’s largest insurance and financial asset protection companies. AIG does business through several subsidiaries, including:

  • Fuji Fire and Marine Insurance Company
  • The United States Life Insurance Company
  • The Variable Annuity Life Insurance Company
  • American General Life Insurance Company
  • AIG Life And Retirement
  • American Home Assurance Company

Farmer’s insurance recently acquired some of AIG’s car insurance divisions. This shows that AIG isn’t in a state of growth and expansion as it may have been in earlier years. To elaborate, AIG car insurance has their subsidiary company, Private Client Group car insurance. You can get the following coverage and policies with Private Client Group car insurance:

Main Coverage benefits: This coverage includes, Liability protection, Uninsured Motorist, underinsured motorist, MedPay, Personal injury protection, collision coverage, and comprehensive auto insurance.

Higher coverage amounts: Because most customers will have up to $1 million in liability included, you can add umbrella coverage of up to $100 million.

Agreed value: AIG car insurance policies can pay the agreed-upon value in the case of a total loss, which is when a vehicle becomes totaled with irreversible damage. AIG can evaluate how much the vehicle is worth and reimburse the owner.

Worldwide liability coverage: This type of coverage is exclusive to AIG Private Client Group policies covering accident claims that happen internationally or while traveling to other countries.

Cash settlement: When you lose a %50 loss in value of a tour vehicle or belongings after an accident, you can opt into a cash settlement instead of repairing your vehicle.

New car replacement: AIG will provide a full coverage replacement of your car and can equal the value of your old car. 

Rental Reimbursement: This is coverage that is also offered by Private Client group insurance and AIG. Rental Reimbursement is the benefit of getting a replacement vehicle that is equal in value to your original vehicle.

Original equipment manufacturer parts: AIG auto insurance can and does provide OEM (Original Equipment Manufacturer) parts to repair luxury and classic vehicles.

The Pros And Cons


  • Certain Auto insurance and Home insurance policies provide a lot in price
  • They provide coverage for luxury insurance for homes and cars.
  • Life insurance is comparable to other competitors like North America.


  • You can’t buy a homeowners’ policy as a standalone policy
  • There is no convenient way to make an application online for a car or home insurance.
  • They don’t have a way to access policies and Auto and Home as one, with no website that makes it all accessible. 

Final Score and Summary

Customer Service: They have key features such as Bill pay online and an ability to view claims and view policies online. Their insurance is available in all 50 states of the United States. 

Return On Investment: It depends on the overall needs of your Home and Auto insurance. Suppose you have a million-dollar home or classic cars that need coverage. That’s where this company shines. They also have services such as Hurricane and Wildfire Protection Units that could be deployed and can help you take preventative measures and give you access to ways to stay protected before, during, and after these events. 

Is AIG Right For you?

If you consider your home and cars as valuable as members of your family, these are good options, and rates will reflect that. They will have offers for cash settlement claims. Hopefully, this article helped you make key decisions about what insurance will work best for you. AIG provides so much, but it also comes with the expectation that price is secondary to coverage. This means it’s not for everyone but could be a relatively good investment for many years. 

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